Which of the following statements is true in the case

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Financial and Managerial Accounting Using Excel for Success
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Chapter 21 / Exercise 1
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
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2) Which of the following statements is true in the case of budgeting for multinational companies?A) While budgeting for multinational companies, managers consider difference in tax statutes as an uncontrollable factor.B) While budgeting for multinational companies, managers do not account for foreign exchange fluctuations as the operating profits are reported in different currencies.C) While budgeting for multinational companies, managers must be aware that budgets willnot be used for evaluating performance.D) While budgeting for multinational companies, managers are not concerned about the domestic factors of the different countries in which they operate.Answer: CDiff: 2Objective: 7AACSB: Analytical thinking
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Financial and Managerial Accounting Using Excel for Success
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Chapter 21 / Exercise 1
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
3) Some companies are budgeting annual carbon emissions of their operations after considering an annual global emissions budget, a share for individual sectors of the economy, and what a reasonable annual allocation would be for the company.Answer: TRUEDiff: 2Objective: 7AACSB: Analytical thinking4) The possibility of exchange rate fluctuations does NOT influence the budgeting procedures in a multinational corporation. Answer: FALSEExplanation: The possibility of exchange rate fluctuations influences the budgeting procedures in a multinational corporation.Diff: 2Objective: 7AACSB: Analytical thinking5) In a multinational company, budgeting is primarily done to evaluate the firm's performance relative to its budgets.Answer: FALSEExplanation: In case of a multinational company, budgeting is not done so much to evaluate the firm's performance relative to its budgets as it is to help managers adapt their plans and coordinate the actions a company needs to take. Diff: 2Objective: 7AACSB: Analytical thinking6.8 Objective 6.A1) The ________ is required to prepare the cash budget of an organization.A) statement of shareholders' equityB) budgeted balance sheet C) capital expenditures budgetD) budgeted statement of cash flowAnswer: CDiff: 2Objective: AAACSB: Analytical thinking2) In the cash budget, the total cash available for needs is calculated using which of the following formulas?A) ending cash + receiptsB) beginning cash + receipts C) beginning cash + receipts - disbursementsD) beginning cash + projected depreciation expense Answer: BDiff: 2Objective: AAACSB: Analytical thinking3) In the cash budget, the cash excess (surplus) or deficiency (deficit) is calculated using which of the following formulas?A) beginning cash + receipts - disbursementsB) beginning cash + receipts - disbursements - minimum cash balance + loan proceedsC) beginning cash + receipts - disbursements - minimum cash balanceD) total cash needed - cash disbursementsAnswer: CDiff: 2Objective: A
AACSB: Analytical thinking

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